Newcastle-based software giant Sage Group, the UK’s largest listed tech company, said on Wednesday it agreed to sell its US-based business Sage Payroll Solutions (SPR) to iSolved HCM, a portfolio company of Accel-KKR, for about £78 million.

“This divestiture is part of Sage’s strategy, as set out in the November 2018 results, to focus on subscription software solutions that are in or have a pathway to the Sage Business Cloud,” said Sage.

“As disclosed at the FY18 results announcement, SPR had revenue of £38m and operating loss of £1m for the year ended 30 September 2018.

“The total sale consideration is approximately £78m, of which £73m is payable in cash on completion (subject to a customary debt and working capital adjustment) and the remaining £5m represents contingent consideration.

“Sage expects to report a statutory profit on disposal of approximately £23m on completion.”

Proceeds of the sale will be invested for growth and used to reduce net debt.